Western European and Canadian buyers of U.S. homes are one part of housing's demand pool the Federal Reserve interest rate increases are likely to suppress, a potentially significant hit to recovery mojo. H
National Association of Realtors chief economist Lawrence Yun actually debates himself over the validity of this assertion, considering the impact higher interest rates would have on currency exchanges and the cost of real estate in U.S. dollars vs. weakened currency, the U.S. as a "safe haven," and other ways to gain value. Yun writes:
There could be even greater interest in buying in the U.S. by the Chinese because of the desire to take money out of the country and park it in a safe location that respects private property rights. For western Europeans, the consideration to buy in Florida is only over lifestyle and financial costs because they are already well accustomed to and know of their country’s private property rights.